How visual identities influence the performance and success of start-ups

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School of Business | Master's thesis

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en

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92

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Finland has become a prominent player in the start-up scene during the late 2010s, with a growing number of start-ups being founded each year. Despite an increase in successful Finnish start-ups, the vast majority do not make it. One of the reasons start-ups fail is the neglect of building a visual brand identity. A visual identity consists of the company logo, colors, typography, and various visual elements used to represent the brand. This study investigates the importance and value of visual identities and when they become relevant for start-up companies. This research study is based on two types of data; an extensive literature review of existing academic research, and empirically collected qualitative data. For the empirical part of this study, 10 semi-structured interviews were conducted with founders of Finnish start-ups. The data analysis process followed grounded theory methodology, with an exploratory approach. The results of the study suggest that visual identities can play an important role in the performance and success of start-ups. Visual identities can boost a start-up’s credibility and attractiveness on the market, positively influencing investors, customers, and employees. More explicitly, a carefully crafted visual identity can improve the chances of receiving funds from investors, increase the number of customers, boost team performance, and attract more people to work for the start-up. All these factors affect how start-ups perform and can ultimately affect whether they succeed or fail. Although branding is a long and ongoing process, it should be initiated in the early days of a start-up. Everything does not have to be polished and clean immediately, but some thought should go into the brand’s mission, vision, and values to set the foundation of the brand. Creating a visual identity for a start-up is an easy way to initiate the branding process since it forces the founder(s) to think about what their brand stands for. However, maximizing the benefits of visual identities requires an understanding of the ways they can be used to a start-up’s advantage, and a continuous effort into developing the visual brand. Although a visual identity does not guarantee start-up success on its own, it provides founders with a valuable tool on their journey to success.

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Shaw, Claire
Eloranta, Ville

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